Personal Financial Tips: Personal Finance Guide for the Year 2019

It is right time that we must read and understand the previous year’s financial policies and other related government regulations once again so that, we may understand properly our financial obligations and hence find there suitable solutions in due time.

By Krishnendu Chatterjee

For each office goer, it’s quite a major challenge to manage his/ her budget and financial obligations. In the first few months of every year, this financial challenge becomes more tough because the working professionals have to pay their income tax, file their previous year’s returns and also have to plan their savings accordingly. They have to focus completely on all the matters regarding their personal budget and other financial issues.

Now, when we have this year’s interim financial budget (due to the Loksabha Elections 2019) then it is right time that we must read and understand the previous year’s financial policies and other related government regulations once again so that, we may understand properly our financial obligations and hence find there suitable solutions in due time.

Hence, let’s discuss the income tax, interest rates on saving accounts, budget, GST, Aadhar and try to know about their impact on our financial status this year.

Income Tax Tips for the Financial Year 2018-19

Government of India has provided the complete exemption from income tax to the people for the income upto Rs. 2.5 Lacs. this year and in the income slab of 2.5 lacs – 5 lacs the people have to pay 5% income tax. Likewise, for the income slab of Rs. 5 Lacs – 10 Lacs the people shall pay 20% income tax and for the income above 10 lacs, the people have to pay 30% income tax. The people with more than 50 Lacs total income should pay 10% surcharge and people with more than 1 Cr. Total income should pay 15% surcharge. Health and education cess is 4% of tax plus surcharge.

Lesson for 2019

For the financial year 2018-19 you would have been very careful while filing your income tax and would have calculated your taxes by using the updates tax structure and rebate changes.

Interest Rates on Savings Account

Interests on saving account are taxable for all the people as per the applicable slab rates. Considering the hardships of Indian middle class, the income tax department introduced a new section 80TTA on 01 April, 2012 to deduct interest rates on saving accounts. The tax payers shall get this benefit on interest rate on saving bank accounts (including co-operative banks) and post office saving account. Likewise, the total deduction shall not exceed Rs. 10 thousands limit. In the financial year 2018-19, except the senior citizens, deduction shall be for all the individuals under this section.

Lesson for 2019

You can invest your money in mutual funds, insurance, stocks and fixed deposits so that you may get good returns in future. Keeping your money idle in saving accounts will take your wealth nowhere.

Linking Aadhar with Bank Accounts and PAN

The honorable supreme court of India has upheld that for filing income tax returns and for the allotment of PAN Card, the Aadhar card would remain mandatory. But giving Aadhar card for opening a new bank account or linking Aadhar card with existing bank account is not mandatory now.

Lesson for 2019

As per the decision of the honorable supreme court of India, now you will require your Aadhar card while filing your income tax returns and applying for your PAN card. But, it is not mandatory to link your Aadhar card with your bank account.

We hope that this article will help you in managing your financial planning in this year. In case, you have something to say or you want to share your opinions, please don’t hesitate to write down your comments. Also, you can share this article to let your friends know about the personal financial tips to follow in 2019. For more interesting articles related to personal finance and financial planning for working professionals, do visit www.jagranjosh.com.

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